Analysis Of Financial Statements
Ts
Grewal 20232024 for Class 12 Commerce Accountancy
Chapter 4  Accounting Ratios
Question 1:
From the following compute Current Ratio:

` 


` 
Trade
Receivable (Sundry Debtors) 
7,20,000 

Bills Payable 
80,000 
Prepaid
Expenses 
1,60,000 

Sundry Creditors 
4,00,000 
Cash
and Cash Equivalents 
2,00,000 

Debentures 
16,00,000 
Marketable
Securities 
2,00,000 

Inventories 
3,20,000 
Land
and Building 
20,00,000 

Expenses Payable 
3,20,000 
Answer:
Current
Assets = Trade Receivables + Prepaid Expenses + Cash and Cash Equivalents +
Marketable Securities + Inventories
= ` 7,20,000+ ` 1,60,000 + ` 2,00,000 + 2,00,000 + 3,20,000
= ` 16,00,000
Current
Liabilities = Bills Payable + Sundry Creditors + Expenses Payable
= ` 80,000 + `4,00,000 + ` 3,20,000
= ` 8,00,000
Current ratio= Current assets/Current liabilities
= 16,00,000/8,00,000
= 2:1
Question 2:
Calculate Current Ratio from the following information:
Particulars 
` 
Particulars 
` 

Total
Assets 
20,00,000 
Noncurrent
Liabilities 
5,20,000 

Fixed
Tangible Assets 
10,00,000 
Noncurrent
Investments 
6,00,000 

Shareholders'
Funds 
12,80,000 









Answer:
Total
Assets = Fixed Tangible Assets + Non  Current Investments + Current Assets
20,00,000 = 10,00,000 + 6,00,000 +
Current Assets
Current Assets = 20,00,000 – 16,00,000 = ` 4,00,000
Total Assets = Shareholder’s Funds + Non – Current Liabilities + Current
Liabilities
20,00,000= 12,80,000 + 5,20,000 +
Current Liabilities
Current Liabilities = 20,00,000 – 18,00,000 = ` 2,00,000
Page
Current ratio= Current assets/Current
liabilities=4,00,000/2,00,000=2:1
Question 3;
Current Assets `20,00,000,
Inventories `10,00,000, Working capital `12,00,000, Calculate Current Ratio.
Answers;
Current liabilities
= Current Assets Working capital
Current
liabilities = 20,00,000
 12,00,000 =8,00,000
Current ratio= Current Assets/ Current liabilities
Current ratio= 20,00,000/8,00,000=
2.5:1
Question 4:
Trade Payables
`
50,000, Working Capital ` 9,00,000, Current
Liabilities ` 3,00,000. Calculate
Current Ratio.
Working Capital
= Current Assets  Current Liabilities
9,00,000 = Current Assets − 3,00,000
Current Assets
= 9,00,000 + 3,00,000 = ` 12,00,000
Current Ratio=CurrentAssets/CurrentLiabilities=12,00,000/3,00,000=4:1
Question 5:
Working Capital
`6,00,000, Total Debt
`27,00,000, NonCurrent liabilities `24,00,000. Calculate Current Ratio.
Answers;
Current liabilities=Total Debt NonCurrent
liabilities
Current liabilities=27,00,00024,00,000=3,00,000
Current Assets= Current liabilities+ Working
Capital
Current Assets=3,00,000+6,00,000=9,00,000
Current ratio= Current Assets/ Current liabilities
Current ratio=9,00,000/3,00,000=3:1
Ts Grewal Solution 20232024
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Class 12 / Volume – I
Chapter 3 – Accounting Ratio